Assume that over the past 2 years, there has been a significant increase in chronic diseases associated with weight gain and inactivity. Suppose the government wants to encourage people to exercise at home, so it imposes a binding price ceiling on the market for in-home workout equipment. Consequently, a shortage of workout equipment will develop. O o the supply of workout equipment will decrease. a surplus workout equipment will develop. the demand for workout equipment will increase. O

Assume that over the past 2 years, there has been a significant increase in chronic diseases associated with weight gain and inactivity. Suppose the government wants to encourage people to exercise at home, so it imposes a binding price ceiling on the market for in-home workout equipment. Consequently, a shortage of workout equipment will develop. O o the supply of workout equipment will decrease. a surplus workout equipment will develop. the demand for workout equipment will increase. O

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Assume that over the past 2 years, there has been a significant increase in chronic diseases associated with weight gain and inactivity. Suppose the government wants to encourage people to exercise at home, so it imposes a binding price ceiling on the market
for in-home workout equipment. Consequently,
a shortage of workout equipment will develop.
O
the supply of workout equipment will decrease.
O
a surplus of workout equipment will develop.
the demand for workout equipment will increase.
O

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